Huawei courts Korean firms for continued partnership
by Jun Ji-hye
koreatimes.co.kr
Huawei officials have been rushing to meet with key executives of Samsung Electronics, SK hynix and other Korean tech companies to maintain business ties, according to industry sources here, Monday.
The move comes at a time when global tech giants including Google and ARM have suspended deals with the Chinese company following the U.S. government's decision to blacklist the Chinese tech giant amid the prolonged trade war between Washington and Beijing.
The U.S. has also been pressuring Korea through various diplomatic channels to join its anti-Huawei campaign.Huawei officials met with key executives of Samsung Display and LG Display as well as Samsung Electronics and SK hynix last week, asking them to continue to supply components.
"Huawei officials claimed the U.S. government restrictions are unreasonable," said an official at one of the companies, who declined to be named.Since the Donald Trump administration effectively barred U.S. firms from selling components and software to Huawei, a slew of companies there including Google, Qualcomm and Intel have severed business ties with the Chinese company.
Amid the turmoil, Korean companies, especially those in the IT sector, have been undecided over the issue as Korea is one of the major allies of the U.S., but at the same time has close economic ties with China.
Huawei reportedly bought components worth $10.6 billion from Korean companies last year.
Samsung Electronics and SK hynix have supplied semiconductors, while Samsung Display and LG Display have supplied display panels. Samsung Electro-Mechanics and LG Innotek are camera module suppliers to the Chinese firm.
According to a business report issued by Samsung Electronics, Huawei was one of the five major clients of the Korean tech giant, alongside Apple and AT&T.
SK hynix's supply of semiconductors to the Chinese company has taken a huge part of its sales as well.
Industry analysts say Huawei could suffer a serious blow in its shipments and market share if the U.S. and China fail to make progress in their negotiations before the firm's current stock runs out. |
